November 19, 2016

Are we on the brink of a firearms recession?

The election of Donald Trump was an occasion for sublime joy here at the Posse, and one we still like to bask in. There are simply so many simple yet effective things that the president-elect can do to safeguard Americans and improve the economy that we cannot easily list them.

However, there is a potential negative development lurking out there: A firearms recession.

Despite its fanatical devotion to the cult of gun control, the Democrats (and President Obama in particular) have done yeoman's work over the last eight years in selling firearms. Every time President Pen and Phone threatens executive action, a new sales record is set.

Support for gun control has never been lower, yet Hillary Clinton doubled down on it during her doomed election bid. Many factors led to her defeat, but that was surely one of them.

In the run-up to the election, firearms sales surged. The wait time for an "instant background check" went from minutes to hours. Gun stores offered "last chance" sales and even I decided to hedge my bets by purchasing an AR before prices spiked - which they surely would have done if Herself had gotten elected.

But now the landscape has changed. The GOP is firmly in control and the self-defense lobby is the one group they fear even more than right-to-lifers.

Given the incredible pace of sales over the last few years, it is entirely likely that the market will need to pause and catch its breath.

In short, was was a seller's market will likely now become more friendly for buyers. Not only guns but ammunition (which has been steadily falling in price already) will probably become much cheaper.

The financial market are aware of this. As news of the Trumpening spread, Smith and Wesson stock dropped 14 percent.

While it has recovered somewhat, it is still below its pre-election values.

We at the Posse with nothing but the best for our favorite manufacturers, but we will also enjoy an opportunity to pick up some bargains.